Hinkley C: China sets up 7 London-based companies

Hinkley Point: China incorporates seven London-based firms:

Beijing’s growing confidence in its plans to help build new reactors at Hinkley in Somerset and Bradwell in Essex has been underlined by the recent incorporation of seven new Chinese nuclear-related firms in London.

It appears, however, that an agreement between China and its partner EDF of France to develop the first new reactors in Britain for 20 years has still not been signed.

Beijing’s creation of so many new businesses could further alarm those concerned at the degree of complexity surrounding the £18bn Hinkley scheme.

“Documents from Companies House show the recent listing of General Nuclear System Limited and Bradwell Power Holding Company alongside more opaque entities such as Libra International and Sagittarius International.

All seven companies use the same Stratton Street address in Mayfair, west London used by the state-owned China General Nuclear Power Corporation. They also have the same director, Zhu Minhong, the public face of China’s nuclear power business in Britain.

Zhu appeared with Vincent de Rivaz, the chief executive of EDF Energy, before parliament’s energy and climate change committee 10 days ago, and stressed China’s optimism about building nuclear power plants in Britain.

A spokesman for China General Nuclear Power Corporation, where Zhu is a general director for the UK, said he could not immediately explain why so many new UK-based businesses had been established or their exact purpose.

The Chinese company announced at a highly publicised signing ceremony in London last October that it would be taking a one-third share in Hinkley Point C alongside EDF, and that it also planned to construct and operate its own locally designed reactors at Bradwell.

Despite heads of agreement being signed off during the visit of the Chinese president, Xi Jinping, EDF and China Nuclear had still not completed the final legal documents in February as the wider Hinkley go-ahead remained stalled while the French power company demanded more financial support from Paris.

EDF declined to spell out exactly what the current situation was, but referred to the statements Zhu made at the select committee when he said: “We have agreed the package deal in terms of the heads of terms. We then spent our time to translate the heads of terms into long-form. What I can say today is that our discussions [are] practically completed.”

Peter Atherton, a utility analyst at Jefferies investment bank in London, expressed concern about the complexities of the wider Hinkley programme, noting that EDF had spoken of having “thousands and thousands” of pages of legal documents to be signed off with it Chinese counterparts.

Complexity is itself a warning that this project is likely to run into some kind of problem. Often when you have a major infrastructure project that runs into problems, say the [London] tube PFI, complex contracts have added to the risk and uncertainty over who bears the responsibility for which costs.

“I would be staggered if anyone in government could tell you where exactly the risk lay [with regard to Hinkley].”

The Department of Energy and Climate Change said: “Hinkley Point C is a major infrastructure project which will boost our energy supply and our economy, bringing in billions of pounds of investment into the UK and creating 25,000 jobs during construction.

“A deal of this scale is by its nature complex, but we are clear on the construction and financing risks, which fall firmly on the developer rather than bill payers.”

http://gu.com/p/4t2m5

Consultants! Don’t we just love them!

(Couldn’t give) ATOS fired from health assessment work, contract awarded to “Maximus”.

Cost doubled to £579 million

1 in 10 reports “below standard” compared to 1 in 25 with (Couldn’t give) ATOS

That’s the way to improve things!

(Sunday Times, page 18)

Dept for International Development audit firm awarded contracts at the same time!

KPMG led a consortium that received £10 million to ensure overseas aid was spent effectively.

At the same time they were awarded contracts worth more than £25 million to scrutinise departmental spending.

KPMG and the Government insist there is no conflict of interest, KPMG insisting that most of the aid money was channelled through its office to groups abroad.

Sunday Times, page 17

Well, that’s ok then.

No wonder our LEP has no qualms about its board members who have nuclear interests!

“MPs face block on employing spouses”

Possible bad news for our MP Hugo Swire, and maybe even worse news for his wife to whom he pays around £35,000 a year for services linked to his office:

http://www.publications.parliament.uk/pa/cm/cmsecret/sponsor-05.htm

She is not designated as his secretary (Suzanne Townsend) nor as his assistant (Toby Young).

Apparently, the Independent Parliamentary Standards Authority was “taken aback” by the number of MPs elected last May who immediately put their spouses on their payrolls and they are braced for a furious response from said MPs.

18 MPs have employed “connected parties” in their offices, in a practice that was expected to “wither on the vine” after it was widely disparaged by all parties prior to the election.  Eight Conservatives, three Labour and seven Scottish Nationalists appear immune to the advice, including Mr Swire it would seem.

It also appears that MPs who receive extra money for putting up their children in their second homes occasionally enjoy “widespread agreement” that this is a “necessary” extra expense.  MP Simon Danczuk was recently ordered to repay £11, 583.20 after an investigation concluded that two of his children had not stayed often enough to merit his claims.

Question: has anyone seen Mrs S with Mr S recently in the constituency, or even at all?  Owl recalls no sightings of her during the last election campaign, though Mr Swire did bring his very personable dog to the constituency in the final few weeks.

As they do not live in the constituency, preferring Mid-Devon, alas it seems we are unlikely to see her in Sidmouth Waitrose any time soon.

Exmouth: development stays on hold as court case continues

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“Family tourist attractions on Exmouth seafront are set to trade for another summer, after obtaining a legal stay of execution.

Owners of the businesses – Exmouth Fun Park and the neighbouring Arnold Palmer mini-golf course – say they look forward to welcoming back their loyal customers – but East Devon District Council (EDDC) faces its seafront redevelopment plans being delayed for several months.

The businesses had been due for eviction in May, having lost a county court case against EDDC in January. However, Chris Wright, tenant of the fun park, and his mother Maureen, joint tenant with Mr Wright of the golf site, continued their court fight, and in a statement have now said that with their next court hearing scheduled for November, the businesses will keep trading until then – giving them at least one extra summer season.

The statement reads: “We have enjoyed over 40 years’ trading on the seafront and have applied to renew our leases so we can continue our businesses here, where we have built up a loyal customer base.

“EDDC has opposed the renewal of our leases in favour of a redevelopment of the seafront.

“The legal process is ongoing and an application for permission to appeal the first instance judgement will be heard in November 2016.

“Until the hearing of that application, the fun park and golf course will be open as usual and we hope you will continue to support our businesses on the seafront over the summer period.”

The tenants are making an ‘oral application’ for an appeal hearing, having had a previous appeal application turned down by the Court of Appeal.
EDDC is planning new buildings and leisure facilities on Queen’s Drive, between the old lifeboat station and The Maer.

Reacting to the latest development, an EDDC spokesperson said: “The original court judgement made in January required the tenants to leave in May 2016, which would have enabled the council to move on to the site this year.
“This latest action now means that the development of the road, car park and water sports centre will not begin for some period of time until the tenants’ next application is heard.

“The tenants’ application for leave to appeal is listed for November. However, the council is applying to bring the hearing forward.

“For the regeneration of Queen’s Drive to continue, the remaining tenancies on the site need to be ended. The judicial system has twice found in favour of the council that the tenants do not have the right to remain on site as their leases have expired. “While the legal process continues, areas of the seafront will remain boarded up and the multi-million-pound all-year-round development – starting with the national watersports centre is being stalled.”

Also this week, East Devon returning officer Mark Williams has confirmed that a parish poll will take place in Exmouth on April 20, between 4pm and 9pm, asking whether Exmouth Town Council should write to EDDC calling for additional independent consultation on its plan.

There will be no polling cards or postal votes. More details will be listed on the EDDC website and at Exmouth Town Hall on 13 April”

Thousands of council workers gagged

“Figures showed 17,571 settlement deals had been signed between 2010 and 2015, many including confidentiality clauses.

Cardiff Council has issued the most settlement agreements, with nearly 3,000 employees signing one since 2010. …

… The 5 live Investigates programme made a Freedom of Information request to all 433 district, city, county and regional councils in the UK. 70% responded. The responses revealed that 17,571 workers had signed a settlement agreement between 2010 and 2015.

Staff often received an enhanced pay-out for signing such an agreement. But it is unclear how much these enhanced arrangements are costing the public purse because the figures include money that staff would have been entitled to under their normal terms and conditions.

But the 17,571 settlement agreements resulted in pay-outs totalling £226.7m. …”

http://www.bbc.co.uk/news/uk-35946263

A3052 – the road to nowhere?

As EDDC, Exeter City Council and the LEP pursue their push for economic growth and housing provision, our local infrastructure is already showing signs of strain. Traffic increases inexorably along the A3052, with no improvements to the road scheduled for the foreseeable future.

There have always been traffic jams during rush-hour on the approaches to the Sandygate roundabout, but a comparatively new phenomenon is the enormous queues leading back along the A3052 from the Clyst St Mary roundabout. Three-mile tailbacks to Greendale are now commonplace.

The problem is caused by increased traffic from the Sidmouth direction, that is unable to access the roundabout due to large numbers of commuters coming into and out of Exeter and turning right towards Exmouth.

By 2030, East Devon may well have an additional 40-50,000 residents, and Exeter will have also grown considerably, with traffic on the M5 also having increased. Nearly all commuters will drive cars. Yet the authorities, and the LEP, with their ambitious targets for growth, appear to have no proposals for road improvements in our area whatsoever.